Where's The Gold Rush?

By Skyler Greene:
As I discussed yesterday in Silver: What Gives?, the gold market's recent reactions are somewhat puzzling. Gold (SPDR Gold Trust ETF: GLD, Sprott Physical Gold Trust: PHYS) should theoretically be acting as a "safe haven" and tracking somewhat with Treasuries, yet as of late it's been playing possum. (As in, it's kind of just laid around.) On days like yesterday when the market sharply drops, gold is rapidly sold off, yet on good days for the market, gold doesn't always respond in turn.

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Gold Price in US Dollars

data by

YCharts

The recent price action is somewhat confusing and has some analysts saying that gold is "on the edge of a violent downturn":
Gold is on the brink of a "violent downturn" and could even fall as low as $700 an ounce as the risk of deflation in developed economies grows and technical pointers turn bearish, oneComplete Story »

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By Ben Kramer-Miller:In the past I have written about the funds issued by Sprott Asset Management -- a subsidiary of Sprott Inc. (OTCPK:SPOXF) -- and I have given reasons that investors should choose these funds over their more liquid and popular alternatives.

By Robert Tepper:As the fiscal cliff looms and the stock market corrects, opportunity abounds. The commodity sector has been hit especially hard over the past two weeks. As my biography indicates, I'm presently holding only two stocks. As I saw Endeavour Silver (EXK) dip into the $7 range over the past week, I aggressively seized the moment and grabbed it with both hands.

Dan Pritch submits: Wednesday, the Sprott Physical Gold Trust (PHYS) completed a follow-on offering of trust units at $11.25 per unit. This was performed in order to acquire physical gold bullion in accordance with the Trust’s objective and subject to the Trust’s investment and operating restrictions.

By Eric Parnell:Gold remains joined in a tough fight. After peaking in early September, Gold has been locked in a steady downtrend over the last few months and has endured a -20% decline along the way. This has caused many to wonder in the past few months whether the rally in Gold that began a decade ago may finally be coming to an end.

David Zurbuchen submits:Since the launch of the Sprott Physical Gold Fund (PHYS) — marketed as a good alternative for investors to gain exposure to gold prices — an outrageous but shrinking premium to its net asset value (NAV) has prevented investors from participating in the recent run by gold to record levels.

Ron Rowland submits:I previously wrote an article entitled PHYS: Now You Can Store Your Gold in Canada. After discussions with Michael Traynor of the National Stock Exchange, I agree with their conclusion that PHYS is not an ETF.